Calculating credit worthiness using transactional data

ABSTRACT

Aspects of the invention provide for the use of transactional data in determining credit and product offerings. Further aspects of the invention provide for generating financial statements and indices using transactional data for use by users and/or financial institutions. The transactional based financial statements and indices may be used for making underwriting and financial planning decisions.

This application is a continuation application of co-pending applicationSer. No. 12/645,277, filed Dec. 22, 2009, which is a continuation ofapplication Ser. No. 11/740,130 (attorney docket no. 007131.00026, nowU.S. Pat. No. 7,734,539), filed Apr. 25, 2007. All of the abovedisclosures are hereby incorporated by reference in their entireties.

FIELD OF THE INVENTION

Aspects of the disclosure relate to using financial transactional datato assist in extending credit and product offerings. More specifically,aspects of the invention relate to generating customer financialstatements based on transactional data.

BACKGROUND

Currently, transactional data is not utilized in preparing real-timepersonal financial statements or indices which may assist a customer orfinancial institution to understand a customer's financial position. Forexample, personal cash flow and net worth statements for a customer arenot presently created from each customer using transactional data. Suchinformation would be useful in assisting a financial institution gaugethe current credit worthiness of the customer.

Financial institutions such as banks extend credit to customers in theform of different types of loans. The determination of whether acustomer should be extended credit is currently based on a FICO centricbased underwriting system. A FICO centric based underwriting system usesa FICO scoring methodology along with other attributes such as TriadScore and Bankruptcy score. FICO continues to be the dominant factor incredit decision making but other factors such as Triad Score areconsidered as well. A calculated score assists the financial institutionin determining whether credit should be extended to a customer and if soat an appropriate interest rate.

Similarly, other credit scoring systems exist which use similarinformation to calculate credit scores for potential customers however,these credit scoring systems and the FICO scoring methodology may notprovide an accurate representation of the

credit worthiness of a customer. All of these scoring systems use afixed scoring methodology which does not take into account currenttransactional data which may provide additional insight into the creditworthiness of a customer. Using the existing FICO scoring methodologymay unnecessarily deny customers credit or particular financialinstitution products.

Additional information regarding a customer's financial position wouldalso be useful in determining the extent of credit and/or particularproducts to be offered to specific customers. For instance, cash flowrefers to the movement of cash over a particular time period. Thecalculation of cash flow may be used as one measure to gauge financialhealth of a customer. Good cash flow projections involve usingup-to-date accurate data regarding inflows and outflows of cash over aperiod of time. Similarly, net worth calculations may be used to assistin determining a customer's financial health. Net worth calculationsinvolve determining a customer's financial position by subtracting thecustomer's liabilities from their assets.

Therefore, a need exists for an improved method and system ofdetermining the credit worthiness of potential customers.

SUMMARY

The following presents a simplified summary in order to provide a basicunderstanding of some aspects of the invention. The summary is not anextensive overview of the invention. It is neither intended to identifykey or critical elements of the invention nor to delineate the scope ofthe invention. The following summary merely presents some concepts ofthe invention in a simplified form as a prelude to the descriptionbelow.

In one aspect of the invention, transactional data may be used ingenerating financial statements. Transactional based financialstatements may provide beneficial information for both customers andfinancial institutions in determining appropriate credit and/or productofferings. The financial statements may include cash flow and net worthstatements. The generated financial statements may be weighted and usedto determine the credit worthiness of a customer. A loan may beoriginated based on the determined credit worthiness of the customer.

Furthermore, in another aspect of the invention transactional data maybe used to determine a percentage of a customer's financial requirementsthat is being filled by particular brands, products, or servicesprovided by a financial institution. The percentage may describe thepercentage share of a customer's wallet a particular financialinstitution may be provided to the customer.

BRIEF DESCRIPTION OF THE DRAWINGS

The present disclosure is illustrated by way of example and not limitedin the accompanying figures in which like reference numerals indicatesimilar elements.

FIG. 1 illustrates an example of a suitable operating environment inwhich various aspects of the invention may be implemented.

FIG. 2 illustrates a simplified diagram of a transactional computer inaccordance with an aspect of the invention.

FIG. 3 illustrates a cash flow statement in accordance with an aspect ofthe invention.

FIG. 4 illustrates categorization of inflows and outflows of a cash flowstatement in accordance with an aspect of the invention.

FIG. 5 illustrates a method of determining credit worthiness of acustomer in accordance with an aspect of the invention.

FIG. 6 illustrates calculating a share of customer's wallet inaccordance with an aspect of the invention.

FIG. 7 illustrates exemplary life events which may indicate animprovement or deterioration in the health and product needs ofindividual customers in accordance with an aspect of the invention.

DETAILED DESCRIPTION

In accordance with various aspects of the disclosure, systems andmethods are illustrated for generating transactional financialstatements and indices. A financial institution such as a bank mayutilize customer transactional data to assist in credit decisions and/orproduct offerings.

FIG. 1 illustrates an example of a suitable operating environment inwhich various aspects of the disclosure may be implemented. Computers102, 104, 106 may be located at various locations such as locations 101,103, and 105. The location may be internal or external to a financialinstitution such as a bank 130. Computers 102, 104, 106 may betransactional computers or terminals found on various internal andexternal networks. The computers 102, 104, 106 may contain transactionalinformation for numerous customers. Such transactional data may includecredit and debit card transactions, electronic bill paymenttransactions, and demand deposit account transactions. Those skilled inthe art will realize that additional computers may be included and thatthose described below in the illustrative embodiments are not intendedto be limiting of the scope of the invention. Furthermore, thetransactional data may also include numerous other types of customertransactional data which may be used in various embodiments of theinvention

FIG. 1 further illustrates computers 102, 104, and 106 may be connectedto a communications network such as communications network 120.Communications network 120 may represent: 1) a local area network (LAN);2) a simple point-to-point network (such as direct modem-to-modemconnection); and/or 3) a wide area network (WAN), including the Internetand other commercial based network services.

Computers 102, 104, and 106 may communicate with one another or with afinancial institution such as bank 130 via communication network 120 inways that are well known in the art. The existence of any of variouswell-known protocols, such as TCP/IP, Ethernet, FTP, HTTP, BLUETOOTH,Wi-Fi, ultra wide band (UWB), low power radio frequency (LPRF), radiofrequency identification (RFID), infrared communication, IrDA,third-generation (3G) cellular data communications, Global System forMobile communications (GSM), or other wireless communication networks orthe like may be used as the communications protocol. Communicationsnetwork 120 may be directly connected to a financial institution such asbank 130. In another embodiment, communications network 120 may beconnected to a second network or series of networks 140 before beingconnected to bank 130.

FIG. 2 illustrates a simplified diagram of a computer in accordance withan aspect of the invention. The computers may comprise memories (108,112, and 116) processors (210, 212, and 214), displays (204, 206, and208), and communication interfaces (232, 234, and 236). The processors210, 212, and 214 may execute computer-executable instructions presentin memory 108, 112, 116 such that, for example, computer 102, 104, and106 may send and receive information to and from bank 130 via network ornetworks 120 and/or 140. Bank 130 may utilize an infrastructure whichincludes a server 231 having components such as memory 158, processor160, display 248, and communication interface 250. The memory for eachof the computers 102, 104, and 106 and server 231 may includenon-volatile and/or volatile memory.

FIG. 3 illustrates a cash flow statement in accordance with an aspect ofthe invention. In FIG. 3, a cash flow statement 302 for a customer 304is displayed. The cash flow statement 302 uses transactional data 306which may be received from numerous internal and external systems. Forexample, transactional data 306 may include checking accounttransactions, electronic bill payments transactions, and/or credit/debitcard transactions. As shown, the cash flow statement 302 may becalculated as the amount of cash receipts or inflows 308 minus the cashpayments or outflows 310 over a given period of time.

A beginning cash flow 312 of $5,000 and an ending cash flow 313 of $550are illustrated in FIG. 3. The beginning cash flow 312 may represent apayroll direct deposit for the customer. The inflows 308 which are addedto the beginning cash flow 312 may include a “transfer from otherfinancial institutions” 314, “other deposits (dividends and interest)”316. The outflows 310 which are subtracted from the inflows 308 mayinclude a mortgage payment 318, and various utility payments 320 such asan electric payment 322, a gas payment 324, a water/sewer payment 325, acable payment 326, and a phone payment 328. Additional outflows 310 mayinclude an insurance payment 330, a grocery payment 332, a gasolinepayment 334, a gym payment 336, an investment account deposit 338, and“other debt (credit card, student loans)” 340.

Those skilled in the art will realize that the inflows 308 and outflows310 illustrated in FIG. 3 are merely exemplary and that numerousadditional and different inflows and outflows are possible. For example,additional inflows may include salary checks, dividends, bonuses, andprize winnings, whereas, outflows may include regular and intermittentbill payments.

The cash flow statement 304 may be used to measure the financialstrength or leverage of a customer. A positive cash flow for instanceproactively indicates favorable financial health contrary to a negativecash flow. As shown in FIG. 3, customer 304 has a positive cash flow of$550 “313.”

FIG. 4 illustrates categorization of inflows and outflows of a cash flowstatement in accordance with an aspect of the invention. In FIG. 4,inflows 402 may be categorized into various groups such as payrolldeposits 404, social security deposits 406, transfers from otherfinancial institutions 408, and other deposits 410. Similarly, FIG. 4illustrates that the outflows 412 may be categorized into various groupssuch as a checks written 414, electronic payments from checking 416,credit card spending 418, debit card spending 420, and bill pay spending422. The various categories for both inflows 402 and outflows 412 maysimplify the cash flow statements and provide information on varioussimilar transactions so that additional analysis may be preformed. Thoseskilled in the art will realize that additional groups may be createdbased on the similarity of the underlying transactions.

In another aspect of the invention, a proxy net worth statement may begenerated on a customer level in accordance with an aspect of theinvention. The proxy net worth statement may include a listing of assetsand liabilities of the customer along with the calculated differencebetween the assets and liabilities.

In another embodiment of the invention, the proxy net worth computationmay focus on cash inflows directly into a financial institution as wellas cash outflows directly towards investments and savings accounts heldat other external financial institutions. The net worth computation mayinclude attributes such as asset valuation based on dividend checkdeposits, amount directed into investment and brokerage accounts, andequity estimation in real estate.

The proxy net worth calculation may provide an improved picture of acustomer financial position. For example, a monthly average of $550 in achecking account could mean that 1) A person's real average balance is$550—in credit decisioning terms this customer may not be credit worthy,or 2) a person's average balance is $550, but they have investments andsavings in other instruments/accounts located in other financialinstitutions as well as the current financial institution. In the secondcase, the existence of additional investments and saving accounts atother financial institutions may indicate that the person is creditworthy and enable the customer to apply for additional credit.

In another aspect the invention, the net worth statement may includedividend check deposits. Based on the amount of the dividend check, acalculation of the total amount of assets held by the customerassociated with the dividend check may be calculated. For example, if acustomer deposits a dividend check in the amount $750 from Company ABC,and if the ABC company has paid a 5% dividend to shareholders, then theamount of assets held by a customer in Company ABC may determined as$15,000 worth of assets (stocks). This information may be used todetermine the credit worthiness of a customer.

FIG. 5 illustrates a method of determining credit worthiness of acustomer in accordance with an aspect of the invention. In FIG. 5,transactional data corresponding to transactions relating to thecustomers accounts are received in step 502. The transactional data mayinclude various transactions such as credit and debit card transactions,electronic bill payment transactions, and checking and saving accounttransactions. The transactions may be categorized into various groups ofinflows and outflows as shown in step 504. In step 506, a cash flowstatement may be generated based on the categorized transactional data.Next, in a step 508 a net worth statement may be generated using thetransactional data. Based on the generated cash flow statement and networth statement credit worthiness of a customer may be determined instep 510. Based on the credit worthiness a loan or credit limit increasemay be approved for the customer.

In another aspect of the invention, the generated cash flow and the networth statement may be weighted and used to determine credit worthinessof a customer. The weighting of a cash flow statement may range from tenpercent to eighty percent depending upon various factors such as thenumber of months of historical data available regarding the particularcustomer. Similarly, the weighting of the net worth statement may alsorange from thirty percent to fifty percent. Those skilled in the artwill realize that the weighting of both cash flow statement and networth statement may be adjusted in numerous different embodiments suchthat that the combined weight equals one hundred percent. Furthermore,those skilled in the art will realize that the completeness of the datamay influence the weightings. For example, a person having a significantbrokerage balance but only having a few transactions (totaling a fewhundred dollars) related to other customer accounts may indicate thatthis person may have their primary transactional accounts with anotherentity. In this example, the weighting of the net worth statement may bea higher percentage of the total weight than that of the cash flowstatement with the total weight still equaling one hundred percent. Inone aspect to the invention, both the cash flow statement and the networth statement are equally weighted.

In yet another aspect of the invention, a FICO score may be generatedfor the customer in accordance with an aspect of the invention. The FICOscore may be used along with the generated cash flow and net worthstatement to determine credit worthiness of a customer. For example, acustomer with a $100,000 net worth and FICO score of 630 may be assumednot to be as risky as a customer with zero or negative net worth and aFICO score of 630.

In another embodiment, the FICO score along with the generated cash flowand net worth statement may be weighted and used to determine the creditworthiness of the customer.

In another aspect of the invention, a share of wallet may be calculatedin accordance with an aspect of the invention. The share of wallet mayindicate a percentage of a customer's financial requirement that isfilled by a particular brand of product or service offered by afinancial institution. For instance, FIG. 6 illustrates share of walletcalculations for a customer. As shown in FIG. 6, a customer may have achecking account 602 and a mortgage 604 with Bank X 606. Additionally, acustomer may have a brokerage account 608 and HE loan 610 with Bank Y612. As shown in FIG. 6, each of the accounts has a balance. Forexample, the checking account has a balance of $1000 “614.” The mortgage604 has a remaining principal amount of $100,000 “616.” The brokerageaccount has a balance of $10,000 “620.” The HE loan has a balance of$20, 000 “622.” In this example, the unweighted share of wallet of BankX is 50% since a customer has exposure to two financial institutions,bank X 606 and Y 612. However, the dollar weighted share of wallet forthe customer is 71% or said otherwise, 71% of the customers financialrequirements are filled by Bank X.

In another embodiment, aggregation of demand deposit accounttransactions into distinct segments may provide the ability to estimateshare of wallets for financial institutions. The share of walletinformation may also be used as an additional factor in determining thecredit worthiness of a customer.

In another aspect of the invention, life event profiling may be used asan additional factor to determine credit worthiness of a customer. Lifeevent profiling may provide early warning indicators of either animprovement or deterioration in the health and product needs ofindividual customers. FIG. 7 illustrates exemplary life events inaccordance with an aspect of the invention. For example, life events mayinclude: beginning of retirement, pension or annuity payments 702, a newjob or customer as evident from payroll deposits 704, a new employer asevident from payroll source 706, a significant raise as evident frompayroll deposits 708, job loss or voluntary termination of employmentevident from cessation of payroll deposits 710, birth of a baby 712,marriage 714, divorce 716, and/or death of a family member 718.

Life events may impact cash flow as well as alter product needs ofindividual customers. Being able to proactively profile those changescreates information driven capabilities for a financial institution toproactively execute on product customization and offerings. The lifeevent information may also be used as an additional factor indetermining the credit worthiness of a customer.

In another aspect of the invention, a determination of whether aparticular customer checking account is the customer's primary checkingaccount may be made in accordance with an aspect of the invention. Acustomer might have multiple checking accounts with different financialinstitutions. To include a checking account which is not the primarychecking account might distort the sampling process. To keep suchaccounts out of the mix, the following techniques may be used to detectwhether the account is the primary checking account.

For instance, the checking account may be monitored for the amount andintervals of payroll deposits. The assumption here is that bulk of acustomer's salary may be deposited in the primary checking account.Furthermore, all payment made from the account may be tracked todetermine whether monthly payments such as mortgage/rent, utilitypayment and other similar overhead payments are made from the primarychecking account. An assumption may be made that in most cases themonthly housing costs are paid from the primary checking account.Furthermore, a confidence number (0 to 100) may be generated. If theconfidence score is high then information derived from the cash flowstatement, proxy net worth, share of wallet and life event profiling maybe deemed reliable and as such used for credit decisioning.

In an additional aspect of the invention, transactional based indicesalong with the transactional based financial statements may be used indetermining credit worthiness of a customer. In various aspects of theinvention, the indices may include a luxury ratio index, a discretionaryindex, a travel and entertainment index, a necessity index, and arelative customer purchase risk profile index.

In an aspect of the invention, a customer's transactions may becategorized into a number of different categories. The categories mayallow for segmentation of the data and provide useful data trends overtime. The categories may include:

1. Airlines

2. Automobiles

3. Brokerage

4. Business Income

5. Business Contractors/Supply

6. Cash

7. Charities & Donation

8. Coffee Stores

9. Computer Hardware/Software

10. Craft stores

11. Drug Stores/Pharmacy

12. Debt Payments (not including Credit Cards with zero revolvingbalance)

13. Education (Schools, Colleges, Universities, Vocational)

14. Electronic Stores, retailers (online retailers)

15. Entertainment

16. Financial Services

17. Fitness

18. Gas Stations

19. Grocery Stores

20. Hair Care

21. Health care

22. Home Improvement Stores

23. Income

24. Insurance

25. Internet Service Providers

26. Lodging

27. Magazine Subscriptions

28. Mortgage Debt Payments

29. Other Income

30. Parking

31. Pet Stores

32. Phone Service

33. Prepaid Cards

34. Rental Cars

35. Restaurants

36. Discount Retailers

37. Non-Discount Retailers

38. Retirement Income

39. Satellite TV/Cable TV

40. Small Businesses

41. Smoothie Stores

42. Travel Services

43. Utilities

44. Wireless Phone Service

Those skilled in the art will realize that the above list of categoriesis not exhaustive but rather an exemplary listing. Each of the indicesalong with various embodiments for each index is discussed below.

In an aspect of the invention, a luxury ratio index may be calculated inaccordance with an aspect of the invention. The luxury ratio indexmeasures the relative number of luxury and necessity purchases made bythe customer. The sum of the number and dollar amount for transactionsbelieved to be luxury (shown in the list below) are divided by the sumof the number and dollar amount for transactions believed to bepredominately necessity (shown in the list below).

-   -   Luxury        -   Airlines        -   Entertainment        -   Lodging        -   Rental Cars        -   Restaurants        -   Retailers—Up Scale        -   Travel Services    -   Necessity        -   Debt Payments        -   Gas Stations        -   Grocery Stores        -   Healthcare

Insurance

-   -   -   Mortgage Debt Payments        -   Utilities—Household electricity, gas, water

In another embodiment of the invention, a luxury ratio risk index(number and dollar) may be calculated in accordance with an aspect ofthe invention. The luxury ratio risk index may adjust the luxury ratioindex using information on income and debt payments. Customers with alarge percent of their income required for debt payments may have ahigher luxury ratio risk index than customers with the same luxury ratioindex value, but require a small percent of their income for debtpayments. The luxury ratio risk index may be calculated by multiplyingthe luxury ratio index by the percent of income required for debtpayments.

In another embodiment of the invention, a luxury ratio incomestandardized risk index (number and dollar) may be calculated inaccordance with an aspect of the invention. The luxury ratio incomestandardized risk index may refine the luxury ratio risk index based onincome information. Customers with below average income levels may havehigher luxury ratio income standardized risk index values. The luxuryratio income standardized risk index may be calculated by multiplyingthe luxury ratio risk index by the average income for all customers thendivided by the income for the specific customer.

In another embodiment of the invention, a luxury ratio five monthmomentum index (number and dollar) may be calculated in accordance withan aspect of the invention. The luxury ratio five month momentum indexmay refine the luxury ratio index based on the five month rate ofincrease/decrease. The luxury ratio five month momentum index may belarger than the luxury ratio index for customers with increasing luxuryratio index values. The luxury ratio five month momentum index may besmaller than the luxury ratio index for customers with decreasing luxuryratio index values. The luxury ratio five month momentum index may becalculated by multiplying the luxury ratio risk index by the luxuryratio index rate of change over the previous five months.

In another embodiment of the invention, a luxury ratio five monthmomentum risk index (number and dollar) may be calculated in accordancewith an aspect of the invention. The luxury ratio five month momentumrisk index may refine the luxury ratio risk index based on the fivemonth rate of increase/decrease. The luxury ratio five month momentumrisk index may be larger than the luxury ratio risk index for customerswith increasing luxury ratio index values. The luxury ratio five monthmomentum risk index may be smaller than the luxury ratio risk index forcustomers with decreasing luxury ratio index values. The luxury ratiofive month momentum risk index may be calculated by multiplying theluxury ratio risk index by the luxury ratio index rate of change overthe previous five months.

In another embodiment of the invention, a luxury ratio incomestandardized five month momentum risk index (number and dollar) may becalculated in accordance with an aspect of the invention. The luxuryratio income standardized five month momentum risk index may refine theluxury ratio five month momentum risk index based on income information.Customers with below average income levels may have higher luxury ratioincome standardized five month momentum risk index values. The luxuryratio income standardized five month momentum risk index may becalculated by multiplying the luxury ratio five month momentum riskindex by the average income for all customers then divided by the incomefor the specific customer.

In another embodiment of the invention, a luxury ratio three monthmomentum index (number and dollar) may be calculated in accordance withan aspect of the invention. The luxury ratio three month momentum indexmay refine the luxury ratio index based on the three month rate ofincrease/decrease. The luxury ratio three month momentum index may belarger than the luxury ratio index for customers with increasing luxuryratio index values. The luxury ratio three month momentum index may besmaller than the luxury ratio index for customers with decreasing luxuryratio index values. The luxury ratio three month momentum index may becalculated by multiplying the luxury ratio index by the luxury ratioindex rate of change over the previous three months.

In another embodiment of the invention, a luxury ratio three monthmomentum risk index (number and dollar) may be calculated in accordancewith an aspect of the invention. The luxury ratio three month momentumrisk index may refine the luxury ratio risk index based on the threemonth rate of increase/decrease. The luxury ratio three month momentumrisk index may be larger than the luxury ratio risk index for customerswith increasing luxury index values. The luxury ratio three monthmomentum risk index may be smaller than the luxury ratio risk index forcustomers with decreasing luxury ratio index values. The luxury ratiothree month momentum risk index may be calculated by multiplying theluxury ratio risk index by the luxury index rate of change over theprevious three months.

In another embodiment of the invention, a luxury ratio incomestandardized three month momentum risk index (number and dollar) may becalculated in accordance with an aspect of the invention. The luxuryratio income standardized three month momentum risk index may refine theluxury ratio three month momentum risk index based on incomeinformation. Customers with below average income levels may have higherluxury ratio income standardized three month momentum risk index values.The luxury ratio income standardized three month momentum risk index maybe calculated by multiplying the luxury ratio three month momentum riskindex by the average income for all customers then divided by the incomefor the specific customer.

In another embodiment of the invention, a luxury ratio momentum trendindex (number and dollar) may be calculated in accordance with an aspectof the invention. The luxury ratio momentum trend index may refine theluxury ratio index based on the ratio of three month to five month rateof increase/decrease. The luxury ratio momentum trend index may belarger than the luxury ratio index for customers with luxury ratio threemonth momentum index values that are greater than the luxury ratio fivemonth momentum index. The luxury ratio momentum trend index may besmaller than the luxury ratio index for customers with luxury ratiothree month momentum index values that are less than the luxury ratiofive month momentum index. The luxury ratio momentum trend index may becalculated by multiplying the luxury ratio index by the luxury ratioindex rate of change over the previous three months then divided by theluxury ratio index rate of change over the previous five months.

In another embodiment of the invention, a luxury ratio momentum trendrisk index (number and dollar) may be calculated in accordance with anaspect of the invention. The luxury ratio momentum trend risk index mayrefine the luxury ratio risk index based on the ratio of three month tofive month rate of increase/decrease. The luxury ratio momentum trendrisk index may be larger than the luxury ratio index for customers withluxury ratio three month momentum risk index values that are greaterthan the luxury ratio five month momentum risk index. The luxury ratiomomentum trend risk index may be smaller than the luxury ratio index forcustomers with luxury ratio three month momentum index values that areless than the luxury ratio five month momentum index. The luxury ratiomomentum trend risk index may be calculated by multiplying the luxuryratio risk index by the luxury ratio index rate of change over theprevious three months then divided by the luxury ratio index rate ofchange over the previous five months.

In another embodiment of the invention, a luxury ratio incomestandardized momentum trend risk index (number and dollar) may becalculated in accordance with an aspect of the invention. The luxuryratio income standardized momentum trend risk index may refine theluxury ratio momentum trend risk index based on income information.Customers with below average income levels may have higher luxury ratioincome standardized momentum trend risk index values. The luxury ratioincome standardized momentum trend risk index may be calculated bymultiplying the luxury ratio momentum trend risk index by the averageincome for all customers then divided by the income for the specificcustomer.

In an aspect of the invention, a discretionary index may be calculatedin accordance with an aspect of the invention. The discretionary indexestimates the percent of customer spending that may be discretionary.The sum of the number and dollar amount for transaction believed to bediscretionary (shown is the list below) are divided by the sum of thenumber and dollar amount for all transactions.

-   -   Discretionary        -   Airlines        -   Coffee Stores        -   Craft Stores        -   Electronic Stores        -   Entertainment        -   Lodging        -   Pet Stores        -   Rental Cars        -   Restaurants        -   Retailers—Up Scale        -   Smoothie Stores        -   Travel Services

In another embodiment of the invention, a discretionary risk index(number and dollar) may be calculated in accordance with an aspect ofthe invention. The discretionary risk index may adjust the discretionaryindex using information on income and debt payments. Customers with alarge percent of their income required for debt payments may have ahigher discretionary risk index than customers with the samediscretionary index value, but require a smaller percent of their incomefor debt payments. The discretionary risk index may be calculated bymultiplying the discretionary index by the percent of income requiredfor debt payments.

In another embodiment of the invention, a discretionary incomestandardized risk index (number and dollar) may be calculated inaccordance with an aspect of the invention. The discretionary incomestandardized risk index may refine the discretionary risk index based onincome information. Customers with below average income levels may havehigher discretionary income standardized risk index values. Thediscretionary income standardized risk index may be calculated bymultiplying the discretionary risk index by the average income for allcustomers then dividing by the income for the specified customer.

In another embodiment of the invention, a discretionary five monthmomentum index (number and dollar) may be calculated in accordance withan aspect of the invention. The discretionary five month momentum indexmay refine the discretionary index based on the five month rate ofincrease/decrease. The discretionary five month momentum index may belarger than the discretionary index for customers with increasingdiscretionary index values. The discretionary five month momentum indexmay be smaller than the discretionary index for customers withdecreasing discretionary index values. The discretionary five monthmomentum index may be calculated by multiplying the discretionary indexby the discretionary index rate of change over the previous five months.

In another embodiment of the invention, a discretionary five monthmomentum risk index (number and dollar) may be calculated in accordancewith an aspect of the invention. The discretionary five month momentumrisk index may refine the discretionary risk index based on the fivemonth rate of increase/decrease. The discretionary five month momentumrisk index may be larger than the discretionary risk index for customerswith increasing discretionary index values. The discretionary five monthmomentum risk index may be smaller that the discretionary risk index forcustomers with decreasing discretionary index values. The discretionaryfive month momentum risk index may be calculated by multiplying thediscretionary index by the discretionary index rate of change over theprevious five months.

In another embodiment of the invention, a discretionary incomestandardized five month momentum risk index (number and dollar) may becalculated in accordance with an aspect of the invention. Thediscretionary income standardized five month momentum risk index mayrefine the discretionary five month momentum risk index based on incomeinformation. Customers with below average income levels may have higherdiscretionary income standardized five month momentum risk index values.The discretionary income standardized five month momentum risk index maybe calculated by multiplying the discretionary five month momentum riskindex by the average income for all customers then dividing by theincome for the specific customer.

In another embodiment of the invention, a discretionary three monthmomentum index (number and dollar) may be calculated in accordance withan aspect of the invention. The discretionary three month momentum indexmay refine the discretionary index based on the three month rate ofincrease/decrease. The discretionary three month momentum index may belarger than the discretionary index for customers with increasingdiscretionary index values. The discretionary three month momentum indexmay be smaller than the discretionary index for customers withdecreasing discretionary index values. The discretionary three monthmomentum index may be calculated by multiplying the discretionary indexby the discretionary index rate of change over the previous threemonths.

In another embodiment of the invention, a discretionary three monthmomentum risk index (number and dollar) may be calculated in accordancewith an aspect of the invention. The discretionary three month momentumrisk index may refine the discretionary risk index based on the threemonth rate of increase/decrease. The discretionary three month momentumrisk index may be larger than the discretionary risk index for customerswith increasing discretionary index values. The discretionary threemonth momentum risk index may be smaller than the discretionary riskindex for customers with decreasing discretionary index values. Thediscretionary three month momentum risk index may be calculated bymultiplying the discretionary index rate of change over the previousthree months.

In another embodiment of the invention, a discretionary incomestandardized three month momentum risk index (number and dollar) may becalculated in accordance with an aspect of the invention. Thediscretionary income standardized three month momentum risk index mayrefine the discretionary three month momentum risk index based on incomeinformation. Customers with below average income levels may have higherdiscretionary income standardized three month momentum risk indexvalues. The discretionary income standardized three month momentum riskindex may be calculated by multiplying the discretionary three monthmomentum risk index by the average income for all customers thendividing by the income for the specific customer.

In another embodiment of the invention, a discretionary momentum trendindex (number and dollar) may be calculated in accordance with an aspectof the invention. The discretionary momentum trend index may refine thediscretionary index based on the ratio of three month to five month rateof increase/decrease. The discretionary momentum trend index may belarger than the discretionary index for customers with discretionarythree month momentum index values that are greater than thediscretionary five month momentum index. The discretionary momentumtrend index may be smaller than the discretionary index for customerswith discretionary three month momentum index values that are less thanthe discretionary five month momentum index. The discretionary momentumtrend index may be calculated by multiplying the discretionary index bythe discretionary index rate of change of the previous three months thendividing the discretionary index rate of change over the previous fivemonths.

In another embodiment of the invention, a discretionary momentum trendrisk index (number and dollar) may be calculated in accordance with anaspect of the invention. The discretionary momentum trend risk index mayrefine the discretionary risk index based on the ratio of three month tofive month rate of increase/decrease. The discretionary momentum trendrisk index may be larger than the discretionary index for customers withdiscretionary three month momentum risk index values that are greaterthan the discretionary five month momentum risk index. The discretionarymomentum trend risk index may be smaller than the discretionary indexfor customers with discretionary three month momentum index values thatare less than the discretionary five month momentum index. Thediscretionary momentum trend risk index may be calculated by multiplyingthe discretionary risk index by the discretionary index rate of changeover the previous three months then dividing by the discretionary indexrate of change over the previous five months.

In another embodiment of the invention, a discretionary incomestandardized momentum trend risk index (number and dollar) may becalculated in accordance with an aspect of the invention. Thediscretionary income standardized momentum trend risk may refine thediscretionary momentum trend risk index based on income information.Customers with below average income levels may have higher discretionaryincome standardized momentum trend risk index values. The discretionaryincome standardized momentum trend risk index may be calculated bymultiplying the discretionary momentum trend risk index by the averageincome for all customers then dividing by the income for the specifiedcustomer.

In an aspect of the invention, a travel and entertainment index (numberand dollar) may be calculated in accordance with an aspect of theinvention. The travel and entertainment index estimates the percent ofcustomer spending that is travel and entertainment. The sum of numberand dollar amount for transactions believed to be travel andentertainment (shown in the list below) are divided by the sum of thenumber and dollar amount for all transactions.

-   -   Travel and Entertainment        -   Airlines        -   Entertainment        -   Lodging        -   Rental Cars        -   Restaurants        -   Travel Services

In another embodiment of the invention, a travel and entertainment riskindex (number and dollar) may be calculated. The travel andentertainment risk index may adjust the travel and entertainment indexusing information on income and debt payment. Customers with a largepercent of their income required for debt payments may have highertravel and entertainment risk index than customers with the same traveland entertainment index value, but require a small percent of theirincome for debt payments. The travel and entertainment risk index may becalculated by multiplying the travel and entertainment index by thepercent of income required for debt payments.

In another embodiment of the invention, a travel and entertainmentincome standardized risk index (number and dollar) may be calculated.The travel and entertainment income standardized risk index may refinethe travel and entertainment risk index based on income information.Customers with below average income levels may have higher travel andentertainment income standardized risk index values. The travel andentertainment income standardized risk index is calculated bymultiplying the travel and entertainment risk index by the averageincome for all customers then dividing by the income for the specificcustomer.

In another embodiment of the invention, a travel and entertainment fivemonth momentum index (number and dollar) may be calculated. The traveland entertainment five month momentum index may refine the travel andentertainment index based on the five month rate of increase/decrease.The travel and entertainment five month momentum index may be largerthan the travel and entertainment index for customers with increasingtravel and entertainment index values. The travel and entertainment fivemonth momentum risk index may be smaller than the travel andentertainment risk index for customers with decreasing travel andentertainment index values. The travel and entertainment five monthmomentum index may be calculated by multiplying the travel andentertainment index by the travel and entertainment index rate of changeof the previous five months.

In another embodiment of the invention, a travel and entertainment fivemonth momentum risk index may be calculated. The travel andentertainment five month momentum risk index may refine the travel andentertainment index based on the five month rate of increase/decrease.The travel and entertainment five month momentum index may be largerthan the travel and entertainment index for customers with increasingtravel and entertainment index values. The travel and entertainment fivemonth momentum index may be smaller than the travel and entertainmentindex for customers with decreasing travel and entertainment indexvalues. The travel and entertainment five month momentum risk index maybe calculated by multiplying the travel and entertainment index by thetravel and entertainment index rate of change over the previous fivemonths.

In another embodiment of the invention, a travel and entertainmentincome standardized five month momentum risk index (number and dollar)may be calculated. The travel and entertainment income standardized fivemonth momentum risk index may refine the travel and entertainment fivemonth momentum risk index based on income information. Customers withbelow average income levels may have higher travel and entertainmentincome standardized five month momentum risk index values. The traveland entertainment income standardized five month momentum risk index iscalculated by multiplying the travel and entertainment five monthmomentum risk index by the average income for all customers thendividing by the income for the specific customer.

In another embodiment of the invention, a travel and entertainment threemonth momentum index (number and dollar) may be calculated. The traveland entertainment three month momentum index may refine the travel andentertainment index based on the three month rate of increase/decrease.The travel and entertainment three month momentum index may be largerthan the travel and entertainment index for customers with increasingtravel and entertainment index values. The travel and entertainmentthree month momentum risk index may be smaller than the travel andentertainment risk index for customers with decreasing travel andentertainment index values. The travel and entertainment three monthmomentum index may be calculated by multiplying the travel andentertainment index by the travel and entertainment index rate of changeof the previous three months.

In another embodiment of the invention, a travel and entertainment threemonth momentum risk index may be calculated. The travel andentertainment three month momentum risk index may refine the travel andentertainment index based on the three month rate of increase/decrease.The travel and entertainment three month momentum index may be largerthan the travel and entertainment index for customers with increasingtravel and entertainment index values. The travel and entertainmentthree month momentum index may be smaller than the travel andentertainment index for customers with decreasing travel andentertainment index values. The travel and entertainment three monthmomentum risk index may be calculated by multiplying the travel andentertainment index by the travel and entertainment index rate of changeover the previous three months.

In another embodiment of the invention, a travel and entertainmentincome standardized three month momentum risk index (number and dollar)may be calculated. The travel and entertainment income standardizedthree month momentum risk index may refine the travel and entertainmentthree month momentum risk index based on income information. Customerswith below average income levels may have higher travel andentertainment income standardized three month momentum risk indexvalues. The travel and entertainment income standardized three monthmomentum risk index is calculated by multiplying the travel andentertainment three month momentum risk index by the average income forall customers then dividing by the income for the specific customer.

In another embodiment of the invention, a travel and entertainmentmomentum trend index (number and dollar) may be calculated. The traveland entertainment momentum trend index may refine the travel andentertainment index based on the ratio of three month to five month rateof increase/decrease. The travel and entertainment momentum trend indexmay be larger than the travel and entertainment index for customers withtravel and entertainment three month momentum index values that aregreater than the travel and entertainment five month momentum index. Thetravel and entertainment momentum trend index may be smaller than thetravel and entertainment index for customers with travel andentertainment three month momentum index values that are less than thetravel and entertainment five month momentum index. The travel andentertainment momentum trend index may be calculated by multiplying thetravel and entertainment index by the travel and entertainment indexrate of change of the previous three months then dividing the travel andentertainment index rate of change over the previous five months.

In another embodiment of the invention, a travel and entertainmentmomentum trend risk index (number and dollar) may be calculated inaccordance with an aspect of the invention. The travel and entertainmentmomentum trend risk index may refine the travel and entertainment riskindex based on the ratio of three month to five month rate ofincrease/decrease. The travel and entertainment momentum trend riskindex may be larger than the travel and entertainment index forcustomers with travel and entertainment three month momentum risk indexvalues that are greater than the travel and entertainment five monthmomentum risk index. The travel and entertainment momentum trend riskindex may be smaller than the travel and entertainment index forcustomers with travel and entertainment three month momentum indexvalues that are less than the travel and entertainment five monthmomentum index. The travel and entertainment momentum trend risk indexmay be calculated by multiplying the travel and entertainment risk indexby the travel and entertainment index rate of change over the previousthree months then dividing by the travel and entertainment index rate ofchange over the previous five months.

In another embodiment of the invention, a travel and entertainmentincome standardized momentum trend risk index (number and dollar) may becalculated in accordance with an aspect of the invention. The travel andentertainment income standardized momentum trend risk may refine thetravel and entertainment momentum trend risk index based on incomeinformation. Customers with below average income levels may have highertravel and entertainment income standardized momentum trend risk indexvalues. The travel and entertainment income standardized momentum trendrisk index may be calculated by multiplying the travel and entertainmentmomentum trend risk index by the average income for all customers thendividing by the income for the specified customer.

In an aspect of the invention, a necessity index (number and dollar) maybe calculates in accordance with an aspect of the invention. Thenecessity index estimates the percent of customer spending that is anecessity. The sum of number and dollar amount for transactions believedto be necessities (shown in the listing below) are divided by the sum ofthe number and dollar amount for all transactions.

-   -   Necessity        -   Debt Payments        -   Gas Stations        -   Grocery Stores        -   Healthcare        -   Insurance        -   Mortgage Debt Payments        -   Utilities—Household electricity, gas, water

In another embodiment of the invention, a necessity risk index (numberand dollar) may be calculated in accordance with an aspect of theinvention. The necessity risk index may adjust the necessity index usinginformation on income and debt payments. Customers with a large percentof their income required for debt payments may have a higher necessityrisk index than customers with the same necessity index value, but mayrequire a small percent of their income for debt payments. The necessityrisk index may be calculated by multiplying the necessity index by thepercent of income required for debt payments.

In another embodiment of the invention, a necessity income standardizedrisk index (number and dollar) may be calculated in accordance with anaspect of the invention. The necessity income standardized risk indexmay refine the necessity risk index based on income information.Customers with below average income levels may have higher necessityincome standardized risk index values. The necessity income standardizedrisk index may be calculated by multiplying the necessity risk index bythe average income for all customers then divided by the income for thespecific customer.

In another embodiment of the invention, a necessity five month momentumindex (number and dollar) may be calculated in accordance with an aspectof the invention. The necessity five month momentum index may refine thenecessity index based on the five month rate of increase/decrease. Thenecessity five month momentum index may be larger than the necessityindex for customers with increasing necessity index values. Thenecessity five month momentum index may be smaller than the necessityindex for customers with decreasing necessity index values. Thenecessity five month momentum index may be calculated by multiplying thenecessity index by the necessity index rate of change over the previousfive months.

In another embodiment of the invention, a necessity five month momentumrisk index (number and dollar) may be calculated in accordance with anaspect of the invention. The necessity five month momentum risk indexmay refine the necessity risk index based on the five month rate ofincrease/decrease. The necessity five month momentum risk index may belarger than the necessity risk index for customers with increasingnecessity index values. The necessity five month momentum risk index maybe smaller than the necessity risk index for customers with decreasingnecessity index values. The necessity five month momentum risk index maybe calculated by multiplying the necessity risk index by the necessityindex rate of change over the previous five months.

In another embodiment of the invention, a necessity income standardizedfive month momentum risk index (number and dollar) may be calculated inaccordance with an aspect of the invention. The necessity incomestandardized five month momentum risk index may refine the necessityfive month momentum risk index based on income information. Customerswith below average income levels may have higher necessity incomestandardized five month momentum risk index values. The necessity incomestandardized five month momentum risk index may be calculated bymultiplying the necessity five month momentum risk index by the averageincome for all customers then divided by the income for the specificcustomer.

In another embodiment of the invention, a necessity three month momentumindex (number and dollar) may be calculated in accordance with an aspectof the invention. The necessity three month momentum index may refinethe necessity index based on the three month rate of increase/decrease.The necessity three month momentum index may be larger than thenecessity index for customers with increasing necessity index values.The necessity three month momentum index may be smaller than thenecessity index for customers with decreasing necessity index values.The necessity three month momentum index may be calculated bymultiplying the necessity index by the necessity index rate of changeover the previous three months.

In another embodiment of the invention, a necessity three month momentumrisk index (number and dollar) may be calculated in accordance with anaspect of the invention. The necessity three month momentum risk indexmay refine the necessity risk index based on the three month rate ofincrease/decrease. The necessity three month momentum risk index may belarger than the necessity risk index for customers with increasingnecessity index values. The necessity three month momentum risk indexmay be smaller than the necessity risk index for customers withdecreasing necessity index values. The necessity three month momentumrisk index may be calculated by multiplying the necessity risk index bythe necessity index rate of change over the previous three months.

In another embodiment of the invention, a necessity income standardizedthree month momentum risk index (number and dollar) may be calculated inaccordance with an aspect of the invention. The necessity incomestandardized three month momentum risk index may refine the necessitythree month momentum risk index based on income information. Customerswith below average income levels may have higher necessity incomestandardized three month momentum risk index values. The necessityincome standardized three month momentum risk index may be calculated bymultiplying the necessity three month momentum risk index multiplied bythe average income for all customers then divided by the income for thespecific customer.

In another embodiment of the invention, a necessity momentum trend index(number and dollar) may be calculated in accordance with an aspect ofthe invention. The necessity momentum trend index may refine thenecessity index based on the ratio of three month to five month rate ofincrease/decrease. The necessity momentum trend index may be larger thanthe necessity index for customers with necessity three month momentumindex values that are greater than the necessity five month momentumindex. The necessity momentum trend index may be smaller than thenecessity index for customers with necessity three month momentum indexvalues that are less than the necessity five month momentum index. Thenecessity momentum trend index may be calculated by multiplying thenecessity index by the necessity index rate of change over the previousthree months then divided by the necessity index rate of change over theprevious five months.

In another embodiment of the invention, a necessity momentum trend riskindex (number and dollar) may be calculated in accordance with an aspectof the invention. The necessity momentum trend risk index may refine thenecessity risk index based on the ratio of three month to five monthrate of increase/decrease. The necessity momentum trend risk index maybe larger than the necessity index for customers with necessity threemonth momentum risk index values that are greater than the necessityfive month momentum risk index. The necessity momentum trend risk indexmay be smaller than the necessity index for customers with necessitythree month momentum index values that are less than the necessity fivemonth momentum index. The necessity momentum trend risk index may becalculated by multiplying the necessity risk index by the necessityindex rate of change over the previous three months then divided by thenecessity index rate of change over the previous five months.

In another embodiment of the invention, a necessity income standardizedmomentum trend risk index (number and dollar) may be calculated inaccordance with an aspect of the invention. The necessity incomestandardized momentum trend risk index may refine the necessity momentumtrend risk index based on income information. Customers with belowaverage income levels may have higher necessity income standardizedthree month momentum risk index values. The necessity incomestandardized momentum trend risk index may be calculated by multiplyingthe necessity momentum trend momentum risk index by the average incomefor all customers then divided by the income for the specific customer.

In an aspect of the invention, a relative customer purchase risk profilemay be calculated. The relative customer purchase risk profile may beFICO weighted. The relative customer purchase risk profile index mayassign a comparative risk index to each customer's monthly purchasepattern. In a first step, category weighted FICO score is calculated foreach transaction category each month. The weighted FICO score for agiven category k is computed from the n transactions occurring withinthat category, their corresponding dollar amounts, and the FICO score ofthe cardholder making each transaction. The computation is as follows:

${{Category}\mspace{14mu} {Weighted}\mspace{14mu} {FICO}_{k}} = \frac{\sum\limits_{1}^{n_{k}}\; {{Transaction}\mspace{14mu} {Amount}_{i} \times {FICO}_{i}}}{\sum\limits_{1}^{n_{k}}\; {{Transaction}\mspace{14mu} {Amount}_{i}}}$

In a second step, a customer purchase risk profile is calculated. Amonthly customer purchase risk profile for a given cardholder (l) iscomputed from the m purchase transactions incurred by that customer forthe month, the category weighted FICO scores for the transactioncategories where charges were incurred, and the dollar amounts of thetransactions under those categories. The computation is as follows:

${CustomerPurchaseRiskProfile}_{l} = \frac{\sum\limits_{1}^{m_{l}}\; {{Transaction}\mspace{14mu} {Amount}_{i} \times {CategoryWeightedFICO}_{i}}}{\sum\limits_{1}^{m_{l}}\; {{Transaction}\mspace{14mu} {Amount}_{i}}}$

In a third step, an average customer risk profile is calculated for agiven FICO score each month. Once the customer purchase risk profilescores are computed for all customers transacting in a given month, aplot of profile score versus customer FICO can be constructed and acurve fit to estimate the profile score per FICO. Curve fitting may bedone using a number of standard plotting and statistical packages thattypically solve for the curve fit using ordinary least squares.

Finally, in a fourth step, the relative customer purchase profile may becalculated. The relative customer purchase risk profile is computed bydividing the customer Purchase risk profile (step 2) by the averagecustomer purchase risk profile (step 3).

In another aspect of the invention, a relative customer purchase riskprofile may be calculated. The relative customer purchase risk profilemay be default rate weighted. The relative customer purchase riskprofile may assign a comparative risk index to each customer's monthlypurchase pattern.

In a first step, a category weighted default rate may be calculated foreach transaction category each month. The weighted default rate forgiven category k may be computed from the n customers makingtransactions within that category, the default status of each thosecustomers (0 for non-default, 1 for default), along with the totaltransaction amount for each of those customers within the category. Thecomputation is as follows:

${{Category}\mspace{14mu} {Weighted}\mspace{14mu} {Default}\mspace{14mu} {Rate}_{k}} = \frac{\sum\limits_{1}^{n_{k}}\; {{Total}\mspace{14mu} {Transaction}\mspace{14mu} {Amount}_{i} \times {Default}\mspace{14mu} {Status}_{i}}}{\sum\limits_{1}^{n_{k}}\; {{Total}\mspace{14mu} {Transaction}\mspace{14mu} {Amount}_{i}}}$

In a second step, a customer purchase risk profile may be calculated.The monthly customer purchase risk profile for a given cardholder (l) iscomputed from the m purchase transactions incurred by that customer forthe month, the category weighted default rate for the transactioncategories where charges were incurred, and the dollar amounts of thetransactions under those categories. The computation is as follows:

${CustomerPurchaseRiskProfile}_{l} = \frac{\sum\limits_{1}^{m_{l}}\; {{Transaction}\mspace{14mu} {Amount}_{i} \times {CategoryWeightedDefaultRate}_{i}}}{\sum\limits_{1}^{m_{l}}\; {{Transaction}\mspace{14mu} {Amount}_{i}}}$

In a third step, an average customer risk profile is calculated for agiven FICO score each month. Once the customer purchase risk profilescores are computed for all customers transacting in a given month, aplot of profile score versus customer FICO may be constructed and acurve fit to estimate the profile score per FICO. Curve fitting may bedone using a number of standard plotting and statistical packages thattypically solve for the curve fit using ordinary least squares.

Finally, in a fourth step a relative customer purchase profile may becalculated. The relative customer purchase risk profile is computed bydividing the customer purchase risk profile (step 2) by the averagecustomer purchase risk profile (step 3).

Although not required, one of ordinary skill in the art will appreciatethat various aspects described herein may be embodied as a method, adata processing system, or as a computer-readable medium storingcomputer-executable instructions. Accordingly, those aspects may takethe form of an entirely hardware embodiment, an entirely softwareembodiment or an embodiment combining software and hardware aspects. Inaddition, various signals representing data or events as describedherein may be transferred between a source and a destination in the formof electromagnetic waves traveling through signal-conducting media suchas metal wires, optical fibers, and/or wireless transmission media(e.g., air and/or space).

Aspects of the invention have been described in terms of illustrativeembodiments thereof Numerous other embodiments, modifications andvariations within the scope and spirit of the appended claims will occurto persons of ordinary skill in the art from a review of thisdisclosure. For example, one of ordinary skill in the art willappreciate that the steps illustrated in the illustrative figures may beperformed in other than the recited order, and that one or more stepsillustrated may be optional in accordance with aspects of thedisclosure.

1. A computer-assisted method comprising: receiving transactional datacorresponding to transactions occurring at an institution by a user;storing, in computer memory by the processor, the transactional data;calculating, using a computer processor, a cash flow statement based onthe transactional data; calculating, using the computer processor, a networth statement using the transactional data, including calculating anamount of assets held by the user at a different institution;calculating, using the computer processor, a transactional index;analyzing, using the processor, the transactional data to determine ifthe user's account is a primary transactional account; weighting, usingthe processor, the calculated cash flow statement and the net worthstatement based on whether the user's account is a primary transactionalaccount; and calculating, using the processor, a share of wallet for thecustomer indicating a percentage of a user's financial requirementfilled by the institution; weighting, using the processor, the share ofwallet along with the generated cash flow and net worth statement; anddetermining, using the processor, credit worthiness based on theweighted share of wallet, cash flow, net worth statement, andtransactional index.
 2. The method of claim 1, further includingoriginating a loan based on the determined credit worthiness of theuser.
 3. The method of claim 1, further comprising: determining a FICOscore for the user; weighting the FICO score along with the generatedcash flow and net worth statement; and determining credit worthinessbased on the weighted FICO score, cash flow, and net worth statement. 4.The method of claim 1, wherein the transactional data comprises creditcard transactions, debit card transactions, and a dividend deposittransaction.
 5. The method of claim 1, wherein the transactional datacomprises electronic bill payment transactions.
 6. The method of claim1, wherein the transactional data comprises checking and saving accounttransactions, and interest deposit transaction.
 7. The method of claim6, wherein the checking and saving account transactional data isanalyzed for life event changes to the user.
 8. The method of claim 6,wherein the checking account transactional data is analyzed to determinewhether the checking account is a primary checking account.
 9. Themethod of claim 1, wherein the transaction index comprises at least oneof: a luxury ratio index, a discretionary index, a travel andentertainment index, and a necessity index.
 10. The method of claim 1,wherein the transaction index comprises a relative customer purchaserisk profile index based on transaction costs during one month and aweighted FICO score for the transaction categories that incurred chargesduring that one month.
 11. The method of claim 1, further comprising:generating a categorized transactional index based on the transactionaldata; determining credit worthiness based on the weighted share ofwallet, cash flow statement, net worth statement, and categorizedtransactional index, where the net worth statement includes the accountoutside of the institution; and originating a loan based on thedetermined credit worthiness of the user.
 12. A non-transitorycomputer-readable medium storing computer-executable instructions, whichwhen executed by a processor, cause a computing apparatus to: storereceived transactional data corresponding to transactions occurring atan institution by a user; calculate a cash flow statement based on thetransactional data; calculate a net worth statement using thetransactional data, including calculating an amount of assets held bythe user at a different institution; calculate a transactional index;analyze the transactional data to determine if the user's account is aprimary transactional account; weight the calculated cash flow statementand the net worth statement based on whether the user's account is aprimary transactional account; calculate a share of wallet for thecustomer indicating a percentage of a user's financial requirementfilled by the institution; weight the share of wallet along with thegenerated cash flow and net worth statement; and determine creditworthiness based on the weighted share of wallet, cash flow, net worthstatement, and transactional index.
 13. The computer-readable medium ofclaim 12, storing further computer-executable instructions, which whenexecuted by the processor, cause the computing apparatus to: generate anindication of a loan application being originated based on thedetermined credit worthiness of the user; wherein the transactional datacomprises at least one of: credit card transactions, debit cardtransactions, and a dividend deposit transaction; electronic billpayment transactions; and checking and saving account transactions, andinterest deposit transaction.
 14. The computer-readable medium of claim12, storing further computer-executable instructions, which whenexecuted by the processor, cause the computing apparatus to: determine aFICO score for the user; weight the FICO score along with the generatedcash flow and net worth statement; and determine credit worthiness basedon the weighted FICO score, cash flow, and net worth statement; whereinthe transaction index comprises at least one of: a luxury ratio index, adiscretionary index, a travel and entertainment index, and a necessityindex.
 15. The computer-readable medium of claim 12, storing furthercomputer-executable instructions, which when executed by the processor,cause the computing apparatus to: generate a categorized transactionalindex based on the transactional data; determine credit worthiness basedon the weighted share of wallet, cash flow statement, net worthstatement, and categorized transactional index, where the net worthstatement includes the account outside of the institution; and generatean indication of a loan application being originated based on thedetermined credit worthiness of the user.
 16. A computer-assisted methodcomprising: storing, in computer memory, received transactional datacorresponding to transactions associated with a user; categorizing thetransactional data into numerous categories; calculating, by a computerprocessor, a luxury index based on a ratio of a dollar amount of luxurytransactions to a dollar amount of necessity transactions; calculating,by the processor, a necessity income standardized momentum trend riskindex for the user based on income information about the user;determining, by the processor, credit worthiness of the customer basedon the numerous categories of the transactional data and the necessityincome standardized momentum trend risk index of the user; andgenerating, by the processor, an indication of an approved loanapplication based on the determined credit worthiness of the user. 17.The method of claim 16, comprising: calculating a FICO score for theuser; and adjusting the FICO score based on the credit worthinessdetermined of the user.
 18. The method of claim 16, wherein the luxuryindex is at least one of: income standardized; adjusted based on aluxury ratio three month momentum index. adjusted based on a luxuryratio five month momentum index. adjusted based on a luxury ratiomomentum trend index.
 19. The method of claim 16, wherein the luxurytransactions comprise transactions related to airlines, entertainment,rental cars, and restaurants.
 20. The method of claim 16, wherein thenecessity transactions comprise transactions related to gas stations,grocery stores, and healthcare.